6
2007 to 2015…Growth of 683 % Source : MPA report, March 2007 The DTH category is expected to grow by 680% or so in the next 7 or 8 years!

7
In 5 years… We have managed to overtake Japan as the largest DTH market in Asia And in the next 5 years (by 2012) we will be able to add another 30 million subscribers (which is about the same as the population of Belgium, Portugal and Greece put-together!)

9
Playing the volume game… DTH in India Indian cable TV subscribers are currently spending about 1.5 - 2% (US$ 4 - 5) of their monthly income on cable services Globally, consumers spend 3 - 4% of their monthly income on pay television services While this indicates a sizeable growth opportunity, only a mass service can achieve the economies of scale to fully exploit the market potential This clearly is expensive business (At least in the short-medium run)

10
Rise in Disposable Incomes 75% percent rise in per capita income ( 1990 – 2007) Source: NCAER Appetite for Entertainment is growing $ 25 Billion being spent annually by Indians on travel 45 Million credit card subscribers growing at 35% annually 10 Million color TVs sold annually 125 Million TV homes ….have doubled in last 6 years Rapid adoption of new technologies by Indians 5 - 6 Million mobile phone subscribers are added every month 350,000 Satellite TV subscribers added every month But, the Indian market is changing

11
DTH …congruence of interests for all stakeholders Consumers Consistent and professional service Superior video / audio quality Multiple channel packages to choose from Interactivity Access to niche content Movies on pay-per-view – 800 films produced in India every year Ability to move anywhere across India w/o buying a new STB Extensive rural reach Broadcasters Transparent / auditable platform with no under-declaration New revenue stream Convenience of dealing with a single operator rather than with multiple MSOs Will minimize piracy Government Plug the tax leakage through declaration Additional source of revenue – license fee payable by DTH operators

12
With its proven, superior technology, value added services & professional customer service Along with the ability to offer all India coverage at low incremental per subscriber cost (upgrading cable infrastructure across India will need huge investments & appeal of Broadband service will be limited to metros & large cities) DTH is set to win…

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Play the volume game Address the mass market with a volume-led strategy Value based pricing will be the key to success Innovate to differentiate Adoption of global success…Red button applications Payment modes Interactive programming New VAS & Products ( PVR) Execute Effectively Address market complexity Rapid scale up To Make Most Of This Opportunity, we need to… Engage and advise the government / Regulator Develop a pragmatic regulatory framework Correct current policy anomalies

22
In Sum What is important to recognise is this is a transitory phase Many players means lots of investment And only lots of investment will help to grow the market In the shorter run though competition may trigger lower tariffs and increase SAC & Cash burn The need is to focus on : Creating Reach to build volume Offer affordable pricing Innovation to create customer value & increase ARPU Outstanding execution to keep & gain new customers And Lots of patience!